Positive Performance, ABM Investama Enthusiastic Adds to Long-term Mining Contracts
As of today, PT ABM Investama Tbk. (IDX: ABMM), a national integrated energy company, holds an Annual General Meeting of Shareholders (AGMS) in Jakarta, and five of AGMS agenda items have been approved by shareholders. In general ABM recorded a positive business performance, supported through integrated subsidiary synergies from mining to trade.
According to Andi Djajanegara, President Director of ABM, the business model is a key strategy of the company that is proven to have a positive contribution throughout the company's business journey, and in the future the ABM Group's business strategy will continue to be evaluated and optimized. ABM as a holding company, continues to drive the healthy growth of all its subsidiary entities, such as adding life of mine contracts through its subsidiaries PT Cipta Kridatama ("CK"), increased the volume of coal production through a subsidiary PT Reswara Minergi Hartama ("Reswara"), as well as increasing coal reserves by adding coal concessions. This overall strategy continues to be carried out as an effort to record positive performance especially due to the impact of the COVID-19 pandemic pressure both nationally and globally which has a profound effect on the coal industry.
"ABM has a more efficient business model from end to end, we will continue to improve the implementation of Mining Value Chain, by implementing synergies between subsidiaries and focusing on optimizing the productivity of subsidiaries, in anticipation of the economic slowdown this year."
In June 15, 2020, CK which is a subsidiary of ABM in the field of mining services contractors, again reach a mining service cooperation contract with a life of mine duration from PT Berkat Murah Rejeki (BMR), located in Tapin Regency, South Kalimantan. In its cooperation contract, CK will assist mining for overburden removal and heavy equipment rental, in achieving a target volume of around 12.6 million bank cubic meters (BCM).
Previously, in early 2020, CK had also obtained a life of mine contract from PT Kuansing Inti Makmur worth Rp 7.4 trillion. While last year, CK obtained a life-of-mine cooperation contract from PT Multi Harapan Utama worth US$ 337 million and PT Binuang Mitra Bersama worth Rp 8 trillion.
Regarding last year's performance, ABMM managed to maintain positive performance. Amid the downward trend in coal prices during 2019, the company was able to obtain revenues of US$ 592.4 million, with EBITDA of US$ 118.9 million. Neither the net profit achieved reached US$ 7.6 million. Meanwhile, total assets in 2019 reached US$ 854.2 million, up compared to 2018, amounting to US$ 852 million. ABMM management has managed to maintain profit margins and EBITDA at positive levels. Neither does the company's total liabilities and debts remain at a healthy level. This condition is far better than the condition of the coal industry in general.
In addition, the results of the AGMS also decided to distribute dividends to shareholders, amounting to Rp 36.25 billion. While the remaining Net Profit will be added to Retained Earnings to develop the Company's business activities in facing challenges and business dynamics this year. The AGMS also approved the appointment of a new director to strengthen the company's management namely Haris Mustarto, completing Andi Djajanegara and Adrian Erlangga as the Company Directors.
Andi explained, "Through the Mining Value Chain strategy by synergizing the subsidiary business, making the company's performance is still well managed at a positive level. We are optimistic, a number of strategic policies that we have prepared, the ABM Group can overcome the dynamics and challenges of the national and global economic slowdown this year, " concluded Andi.